Government Avoids Default and Reopens the Government

By P. Scott Shearer, Bockorny Group, Washington, DC | Oct 21, 2013

Hours before the United States would have defaulted for the first time in its history, the Senate leadership jointly announced that an agreement had been reached to avert the United States going into default. Senate Majority Leader Harry Reid (D-NV) and Senate Minority Leader Mitch McConnell (R-KY) said the agreement would raise the debt ceiling, which would allow the government to continue borrowing to pay its bills through Feb. 7, 2014, and would provide funding to reopen the federal government and keep it running through Jan. 15, 2014. Also, a negotiated budget resolution is to be completed this December.

The agreement passed the Senate by a vote of 81-18 and the House by a vote of 285-144. All "no" votes in the Senate and the House were cast by Republicans. Thus, we have kicked these major issues down the road until early next year. The concern is we go through this last-minute crisis again in January.